Stability and Changability in Sustainable Development

STABILITY AND CHANGABILITY IN SUSTAINABLE DEVELOPMENT

Leonid Melnyk

Sumy State University, Ukraine

In the end, sustainable development relies on the following three aspects, each of which belonging to the class of open stationary systems:

-  a man as a biological organism and as a social being;

-  ecosystem and biosphere in general;

-  social-economic system

The systems analysis of the problem can provide us with fundamental differences of the formulated goals of the sustainable development. As it stands, the principle goal of the sustainable development is associated with predominantly infinite existence of human civilization and its progressive development. This goal has two levels: 1) necessary, also known as subsistence level, which basically means physical survival of a biological human being; 2) sufficient level, which means spiritual development of a social human being. Both levels are extremely important.

There are also some providing objectives that are aimed at: (i) preservation of biosphere in a very narrow sense when human biological being can exist (i.e., human organism can maintain its homeostasis level); this depends on such parameters as key climate characteristics and physical parameters (temperature, electromagnetic features, cosmic emanation), atmosphere and water composition, the composition of soil used for agricultural production; (ii) preservation of the entire landscapes as informational basis for development of a personality (a social human being).

As well there are supporting objectives that stipulate the creation (maintenance) of the conditions, in which biosphere and its components can exist and which actually provide and renew some vital conditions for a human being as a biological being and as homo sapience.

Social-economic system also helps to achieve some goals of sustainable development. These goals are: (i) provision of biological metabolism (nutrition and drinking water supply); (ii) provision of optimal physical conditions; (iii) provision of material and informational flows for spiritual development of a human being.

Principle difference amongst three components of sustainable development mentioned above is as follows. A man as a biological being can live only within a very narrow interval of physical and environmental parameters set for him by nature. Any deviation from these parameters threatens the entire existence of human civilization. To preserve this narrow interval, some negative feedback mechanism is required based on constraints, standards, bans, sanctions, etc. This is exactly the goal economic mechanism must be aimed at.

In contrast, constraints that are associated with the necessity to preserve biosphere and ecosystem elements' homeostasis are relative in nature. Change in the environmental conditions and biosphere's homeostasis as well as preservation of ecosystem's homeostasis are the required conditions for a human being. Negative feedback loops including economic instruments are needed to preserve original lands (reserves and national parks) as well as to reduce ecological impact on all components of the natural environment.

Social-economic system is the only element that can and must transform rapidly. It is necessary for: first, satisfaction of social needs of a human being, which change very quickly or in other words which progress; second, improvement of the social-economic system itself. The latter is based on production that satisfies ever-increasing human needs. In order to be able to provide for constantly growing population and to stay within the capacity of ecological system, production needs to become more efficient to achieve resource savings, particularly in terms of reduction in material and energy consumption. So, in contrast to the biological human being and biosphere, management of the social-economic system should be directed towards progressive change in homeostasis instead of just its preservation. In this regard, positive feedback mechanisms should be developed.

Two approaches, conservative and that of positive changes constitute a methodological basis of a modern economic mechanism to achieve sustainable development.

Conservative approach is based on the use of negative feedback mechanisms. With their help mankind resists any changes (this is where the name comes from) that can threaten ecosystem's sustainability. Currently, in environmental sciences this approach is realized in the following forms:

-  preservation methods: creation of reserves, national parks -territories, where the impact on nature is reduced; bans on rare biological species;

-  restricting methods: licenses for the use of natural resources; quotas for wild animals trade; environmental standards; regulation of hunting; birthrate regulation;

-  banning methods: bans on hunting of certain animals; bans on cloning, bans on production and use of some substances (pesticides, ozone harmful substances);

-  regulating methods: soil cultivation (kinds of crops and kinds of cultivation to be used on hills with different angle tilt); transportation and storage of ecologically dangerous substances; use and transportation of biological species and biologically active substances;

-  suppressive methods: economic sanctions, fines, increased prices, taxes.

Positive changes approach is associated with incentives to stimulate changes on condition that they help to reduce destructive pressure on the environment. Such approach is based on the use of positive feedback mechanisms. In particular, the approach is based on the use of different favorable terms, material and moral incentives for innovations. The principle goal of this approach is to provide constant renewal (re-production) of four basic components of social-economic system: (1) demand; (2) supply; (3) people; 4) motives of human activities.

In countries with market economy economic mechanism is the basis for the sustainable development. Economic mechanism includes the whole complex of economic structures, institutions, forms and methods of management with the help of which current laws are implemented in accordance with social and private interests. Basic components of such a mechanism are:

1.  legislative basis of economic activity (rights, duties, licenses, restrictions, procedures);

2.  property rights;

3.  organizational structure of economy;

4.  system of public institutions (traditions, moral basics, religion, spiritual values);

5.  economic instruments.

Conditionally economic instruments can be differentiated into three interdependent and interconnected groups: prices of resources; economic benefits/costs, transfer payments.

Depending on the implementation, systems of ecological and economic instruments can be divided into 4 basic groups:

1.  Administrative redistribution of funds (mostly fines and subsidies). This group of economic instruments is a system of well defined and well addressed cash flows (for instance, from a guilty party to victims) which is used in cases of environmental emergency when the consequences of environmental impact are not conventional and they need specific evaluation.

2.  Financial transfers. This is well-regulated and controlled system of redistributive mechanisms (taxes, payments, credits).

3.  Free market mechanisms of funds redistribution. A good example of this instrument would be the so called tradable emission permits that have become widely spread in some USA states.

4.  Promotion on the market. This instrument is related to the use of non-monetary forms of economic promotion (rewarding with special signs; free of charge advertising), which gives additional competitive advantage.

Different ecological and economic instruments are used in different countries. However, the most popular ones are: taxes, subsidies, grants, bonuses, payments, fines, promotions, price control, insurance, and amortization instruments.